Cal-Maine Foods, Inc.

Fourth-quarter consolidated revenue was $552.6 million, down 49.9% year over year. Consolidated gross profit was $34.1 million with a 6.2% gross margin, operating loss was $58.8 million, and diluted loss per share was $0.76. For the full fiscal year, revenue was $2.912 billion, down 31.7%; gross profit was $672 million with a 23.1% gross margin; operating income was $350.2 million; and diluted EPS was $6.63. By segment in FY2026, Conventional Shell Eggs generated $1.348 billion of revenue and $217 million of operating profit, Specialty Shell Eggs generated $1.07 billion of revenue and $182 million of operating profit, and Prepared Foods generated $245 million of revenue and $34 million of operating profit. Management did not provide formal numerical revenue or EPS guidance, but said the first 5 weeks of Q1 fiscal 2027 averaged $0.72 for conventional egg prices, about 54% below the comparable Q4 period, and noted prices had recently increased by more than 90%; they expect a stronger pricing environment into the fall and a more robust trajectory after Q1.

Sherman Miller framed fiscal 2026 as a year of strategic repositioning, emphasizing acquisitions, specialty mix expansion, and investment in Prepared Foods to make earnings less cyclical and more durable. He repeatedly described the current conventional egg pricing backdrop as a supply-driven trough rather than a demand problem, and said the company is built to withstand low points in the cycle thanks to its scale, vertical integration, and strong balance sheet. His tone was constructive but cautious: he acknowledged the quarter was one of the toughest pricing environments the company has seen, while arguing that the portfolio shift and capacity investments will improve resilience and long-term earnings power.

Max Bowman walked through the reported figures and segment results, highlighting that Q4 was pressured by historically low conventional egg pricing while volumes were not the main issue. He said SG&A was $93.6 million in Q4 and $329.2 million for the year, net cash from operations was $2.8 million in Q4, and the company ended the quarter with $924.1 million in cash and temporary investments while remaining virtually debt-free. He also said the company repurchased 396,083 shares for $30.1 million in the quarter, with $320.7 million still available under the $500 million authorization, and reiterated that no cash dividend will be paid until cumulative profits recover the $35.9 million loss threshold from the most recent dividend date.

Analysts focused on why conventional pricing and specialty margins were behaving differently than expected, whether retail pricing mix had changed, and how much variability should be expected in Specialty Eggs. Management said the pricing mix was steady, with about 50% market and 50% grain-based/hybrid, and that the quarter’s weak realization mainly reflected an all-time low Urner Barry market; they also said specialty margins were compressed by seasonality, low California-linked market pricing, and an unusually strong prior-year comparison. Questions also covered Prepared Foods growth and capex timing, where management said the business is on track, top line should start to improve as previously announced capacity comes online in 2027, and most of the new $54 million investment will be spent in 2027. Analysts also asked about M&A and higher-margin product categories, and management emphasized disciplined, egg-centric bolt-on deals and a diversified Prepared Foods portfolio including egg-based items and products where eggs are a key ingredient.